Supply Chain Operations

Why is Operations also referred to as a process of transformation

ByAdmin September 16, 2021

Because activities involved in the day-to-day of business are always changing.

Because operations as a discipline has always transformed over time.

Because, in operations, we transform inputs (raw materials, machinery, and labor) into outputs (products or services).

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By producing better quality.

By producing each product faster.

By producing more, we can produce each unit cheaper.

By being more economical, we produce a better output.

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If we produce faster, we minimize cost.

If we can produce faster, then we can be more responsive to the market.

If we can produce faster, then we can produce more in the same facilities.

If we produce faster, there is less chance of having a defect.

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Better materials is more expensive.

Producing more than you actually need because you have to account for defects is costly.

Customers do not want to buy those defective products and therefore replacing them is costly.

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The quality of bending easily without breaking.

The ability to easily modify a production schedule (change items, quantity, order, etc.).

The willingness of the workers to change or compromise.

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Increase flexibility to be able to respond to the market.

Optimize the objective, by changing one or more variables, subject to certain constraints.

Minimize cost by producing more.

Eliminate constraints to increase throughput.

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Quality

The elimination of the seven waste’s

Efficiency

Kaizen

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The Japanese term used by Toyota for a production system focused on continuous improvement.

A quality system used by many companies.

Employee empowerment to continuously flag quality issues as they appear and improve the process as a result.

It means perfect production.

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transport, inventory, motion, waiting, overproduction, overprocessing, defects

manufacturing, speed, inventory, flexibility, waste, warehousing, quality

manufacturing, transport, inventory, waiting, waste, overprocessing, quality

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Flexibility, Perfection, and Economies of Scale

Inventory, Throughput, and Operational Expense

Cost, Speed, and Quality

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We will produce as much as possible.

We achieved our goal.

There will be another constraint limiting throughput.

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We do not produce as much as we could.

We are inefficient in our production facility.

An unusual buildup of inventory somewhere in the production system.

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